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Office of Procurement, Acquisition and Logistics (OPAL)


Other Contract Policies and Obligations

Tel: (708) 786-7737 Contacts Survey

On this page:
Minimum Contract Sales Criteria  |  Modifications  |  Price Reductions  |  Extensions & Cancellations  |  Trade Agreements  |  Manufacturer Letter of Supply  |  Price Lists  |  Maximum Orders  |  Government Purchase Card

There are many significant polices and obligations pertaining to your awarded VA FSS contract of which your firm must be aware; the following highlights a few of these. For any advice or clarifications contact your assigned contract specialist.

Minimum Contract Sales Criteria

Applicable Regulation:  I-FSS-639 Contract Sales Criteria.

Requirement:  Your company must accrue at least $25,000 of VA reportable sales during the first 24 months of your contract and maintain an additional $25,000 in sales each year thereafter. In accordance with 552.238-79 Cancellation, the Government may cancel your firm’s contract unless reported sales are at the levels specified.


Applicable Regulations:

  • 552.238-82 Modification
  • 552.216-70 Economic Price Adjustment – FSS Multiple Award Schedule Contracts
  • 552.238-81 Price Reductions

Requirement:  As a Schedule contractor you may request a contract modification by submitting a request for review and approval by your assigned Contract Specialist.

  • Modification Forms - Download the current modification request forms required to update your Schedule contract and to learn about modification submission protocol.
  • Mass Modifications - Download the current mass modifications available for each Schedule program.
Price Reductions

Applicable Regulation:  552.238-81 Price Reductions.

Requirement:  VA FSS contractors must maintain an approved Tracking Customer (the basis of award customer) discount relationship (i.e. the Tracking Customer ratio). If you lower your prices to the contract tracking customer, you are obligated to make a reduction for your Schedules contract to maintain awarded pricing at or below the awarded tracking ratio. Exceptions to price reductions are outlined in FSS contract clause 552.238-81 Price Reductions.

Extensions & Cancellations

With the exception of contracts awarded under Schedule 65 I B, VA Schedule contracts are awarded for a base 5-year period of performance with the potential for 5 additional years.

Applicable Regulations & Requirements:

  • 52.217-9 Option to Extend the Term of the Contract - The Government may extend the term of your awarded contract to add 1 or more option year periods, not to exceed 5 additional years. The total period of performance shall not exceed 10 years.
  • 552.238-79 Cancellation - Both the Government and your firm (as the contractor) have the right to cancel your awarded contract in whole or in part by providing 30 days written notice.
Trade Agreement Act (TAA)

Applicable Regulation:  52.225-5 Trade Agreements.

Requirement: The Trade Agreements Act is applicable to all Schedules. In exercising its authority under FAR Part 25, Foreign Acquisition, purchases by Ordering Activities are restricted to either U.S.-made or designated country end products. A U.S.-made product can be either 1) an article that is mined, produced, or manufactured in the United States, or 2) an article that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. It is the offeror’s responsibility to verify that all offered products are U.S. made or designated country end products as defined in clause FAR 52.225-5. When an item consists of components from various countries and the components are assembled in a designated country, the test to determine country of origin is substantial transformation (see FAR 25.001(c)(2)). Offerors requiring a determination on substantial transformation can go to the US Customs and Border Protection (CBP) Office of Regulations and Rulings. For services, origin is determined by the country in which the firm providing the service is established, not the location at which the services are performed.

*See exceptions for 65IB SIN 42-2a non-availability determinations on our TAA webpage.

Manufacturer Letter of Supply

Applicable Regulation:  I-FSS-644 Dealers and Suppliers (Clause & Template).

Requirement:  If you are a dealer/distributor/reseller you are required to submit a letter of supply from all manufacturers in order to assure the offeror a source of supply sufficient to satisfy the Government’s requirements. The sample letter above does not indicate a required format; however, it does include recommended language and outlines the components that must be included in the letter.

Price Lists

Applicable Regulations:

  • 552.238-88 GSA Advantage!
  • I-FSS-600 Contract Pricelists
  • 552.238-77 Submission and Distribution of Authorized FSS Schedule Pricelists

Requirement:  VA Schedule contractors are required to maintain three approved price lists. These documents specify the awarded products, services, prices, terms & conditions of your Schedule contract and must be revised to reflect any modifications to your contract.

  • Authorized FSS Paper Price List
  • NAC Contract Catalog Search Tool (CCST)
  • GSA Advantage!

It is your responsibility to ensure the integrity & accuracy of the information provided in each of these required price lists. Visit our Price Lists Requirements page for more information.

Maximum Orders

Applicable Regulation:  52.216-19 Order Limitations.

Requirement:  Schedules contractors are obligated to accept any order from an executive agency that is below the Maximum Order threshold. Outside of the executive branch, a contractor is encouraged, though not required, to accept an order under this threshold. For orders over the Maximum Order threshold, agencies will generally expect a price break due to the large volume of the sale. Maximum order threshold is determined on a schedule by schedule or sometimes on a SIN by SIN basis. To view schedule/SIN specific thresholds, visit the VA Schedule Programs web page to link to each schedule.

Government Purchase Card

Applicable Regulation:  52.232-36 Payment by Third Party.

Requirement:  Contractors must accept the credit card for payments at all dollar values.


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